3M Bounces Back: Citi Says “Buy”

Shares of 3M (MMM), which yesterday sold off on a disappointing 2010 forecast, is bouncing back this morning, up $1.78, or 2.3%, at $78.89, after Citigroup (C) analyst Jeffrey Sprage raised his rating on the stock to “Buy” from “Hold” and raised his target price to $92 from $84. Sprage raised his estimate for next year to $5.15, above the $4.85 to $5 management offered. In effect, he thinks the company is low-balling its own growth prospects. With 65% of sales outside the U.S., and 30% coming from emerging economies, 3M’s target of 7% to 8% long-term growth
looks “credible,” writes Sprague.

My colleague Teresa Rivas argued yesterday for buying 3M on the dip in her Barrons’s Take article.